ROI Performance and KPI’s for Law Firms

Utilizing KPIs can be challenging for law firms since their software packages are not able to generate this information in a timely fashion and also if not well defined KPI can lead to overreaction from part of law firms.
To evaluate the performance of your online marketing efforts, it is important to ensure that you are measuring the right analytics.

Why it is important to analyze your marketing efforts?

Digital marketing analytics for your law firm can show you the areas where you have the greatest potential for growth so that you can focus your efforts on them.
With analytics, you measure, analyze and manage the performance of your digital marketing strategy. By analyzing your marketing actions you minimize waste in your marketing budget and use your time in a more efficient way.

In a sector where the analysis of legal facts defines so much of the work conducted on a daily basis, it is surprising that so many law firms do not apply the same rules when it comes to their marketing strategies and often neglects to derive meaningful facts in form of data. Furthermore, law firms often miss crucial opportunities by not analysing and extracting insights from their marketing data.

How to start analyzing your marketing efforts?

In the age of traditional marketing, professionals would rely on circulation and statistics to decide whether a campaign was successful or not. Nowadays with so many digital platforms and online communication tools, it is so easy to access relevant and useful insights about marketing campaigns.

Now when it comes to law firms, I think resistance to adopting marketing measurements is a result of one or more of the following reasons:

• Law firms are not aware of what data they need to gather
• They don’t know which is the right information to collect
• And their digital marketing strategies haven’t been set up with the purpose of collecting metrics or tracking their results.

To solve this problem we recommend the use of KPI’s? A KPI is a measurable value that demonstrates how effective a company is to achieve key business objectives. There are high-level KPIs that focus on the overall performance of a business and there are low-level KPIs that focus on the processes of specific departments such as marketing for example.

When setting digital marketing KPIs, they should be defined in conjunction with your firm’s overall strategic and operational goals. Since they have to be very specific to your practice area and services you are providing you need to decide the specifics of your KPIs, nevertheless we can give you a few hints to start with. Universally your KPI’s should:

• Reflect the firm’s strategic ambitions, business goals and marketing purpose. For instance, is the business focused on new business acquisition or client retention?
• Combine quantitative and qualitative data collection that can indicate to what extent you are achieving your goals.
• Be as specific as possible but also leave some room for industry-level insights.

By considering the examples above you can start and develop a framework that will help your firm create the right KPIs. There are three areas in which we recommend start building reports and tracking results:

• Website Analytics
• Social Media
• Marketing and Business Development

And for each one of them, we have prepared KPI’s that you can track. Below there is a template to download and you will see your marketing results changing. Now we want to ask you which KPIs do you analyze and what is working for you?